Increase in mortgage and trustee payment after confirmation

[ana831]

Hi,

I hope that comeone has some guidance for me. I filed for bankruptcy in April 07, mainly because did not want to lose my home. I am a single mother of two and I needed a new start. My post-bankruptcy budget was tight, but I was willing to live with it, especially from June-August when I do not work my part time job.

Last month, I received a letter from my mortage company informing me that my interest rate will be increased by 2% starting in August and another letter from the trustee increasing my original payment by almost $300.

I called my lawyer and he said that it is what it is. There is no negotiating these payments.

I have no idea what to do next. I feel that at some point, this will all backfire and the bankruptcy will not have served the intended purpose.

Any thoughts.

Thanks.

Annie

[lrprn]

I filed for bankruptcy in April 07, mainly because did not want to lose my home.

Annie, since you're in the Chapter 13 area, I'm assuming that you filed Ch 13.

I called my lawyer and he said that it is what it is. There is no negotiating these payments.

Is your mortgage an ARM (adjustable rate mortgage)?

What was the trustee's reason for the $300 increase in your payments? You have a right to understand why the increase was made. If you believe the reason is not legitimate, your lawyer can go to court and challenge the trustee's decision. However, often you will have to pay your lawyer extra by the hour since this is now beyond the typical Ch 13 bankruptcy lawyer duties.

It will help us to know which state you're in and if there have been any changes in your income or expenses since you filed in April. Also, was your case ever confirmed? Did the trustee or a creditor ever file an objection (or objections) to your case?

Hang in there. We'll help you sort this out if we can.

[CATCHMEIFYOUCAN]

I would think if you income changes, you would be allowed to adjust the plan ? That wouldn't be fair if you couldn't ! Hope things work out for you !

CMIYC

[ana831]

Hi,

Thanks for the quick responses. I do have an adjustable rate with Ameriquest. This is the first increase in two years. The timing was terrible. The difference in trustee payments was based on an adjustment in overdue fees due to my condo association. What surprised me was that I had already received my confirmation and thought everything had been squared away. Honestly, I just don't have the extra money. I am looking for another part tiem job. My lawyer was aware that my income was less in the summer months but he said that wouldn't matter to the trustee.

I feel trapped. This changes mean that I have to cut my food bill to more than half. My other househols bills are already at a minimum.

Trapped in New Jersey

[lrprn]

I do have an adjustable rate with Ameriquest.

Unfortunately untimely increases in the loan's interest rate is the reality of having an ARM

The difference in trustee payments was based on an adjustment in overdue fees due to my condo association.

How much were the overdue fees? $300/month for 3-5 years is a heck of an Ch 13 payment increase for just this. No chance anything else was involved?

What surprised me was that I had already received my confirmation and thought everything had been squared away.

Something feels strange about this, Annie. Typically after confirmation, unless your lawyer files an amended plan, changes don't happen. Did your lawyer file an amended plan after you were confirmed?

I feel trapped. This changes mean that I have to cut my food bill to more than half. My other househols bills are already at a minimum.

I'm so sorry to see that you are at a crisis point just a few months after you filed. You are already looking for other work - good for you that you are doing what you have to do to increase your income as quickly as possible. Sounds like you've done what you could already to cut your utilities - for example, give up a landline if you have a cell phone, cut cable, etc. Can family or friends help you at all?

One suggestion for you - get a free PACER (Public Access to Court Electronic Records) account so you can see what's going on with your case yourself - https://pacer.psc.uscourts.gov/psco/cgi-bin/psclogin.pl and click on Need an Account and Password. Some portions of your record will cost you $0.08/page to view, but as long as you are careful, you won't run up much of a bill. This way you can see for yourself exactly what has been filed by everyone involved in your case. Here's the FAQ page for PACER - http://pacer.psc.uscourts.gov/faq.html - all your questions about PACER are likely to be answered here.

Hang in there, Annie. We're here if you have more questions or need to share your frustrations any time.

[ana831]

Thank you for the advice. I am getting all my papers together so I can review them in the order I received them. Thus far, I have not come across an amended plan. I really don't remember seeing one. Once I have everything together, I'll let you know.

Thanks for the support.

Annie

[HenriettaHen]

Annie, on Pacer you will be able to see any amended plan or anything else that has been filed for your case. You can download and print it as well.

You can see the entire history of your case, including anything that the creditors have filed, anything your attorney has filed, anything the trustee has filed, etc.

You can download the actual documents, which have been scanned into the system as they are filed.

It's really nifty. Just make sure that you look at the billable amount before you click 'view report', and be sure you are searching only your own case number.